Used electric car market reaches tipping point, VRA AGM hears

The UK’s used electric vehicle (EV) market has reached a tipping point, with rising consumer demand, improving residual values and growing lender confidence signalling a new phase of market maturity, delegates at the Vehicle Remarketing Association (VRA) Annual General Meeting heard.

Speaking at the event, hosted by BCA at its Perry Barr remarketing centre in Birmingham, Fraser Brown, director of specialist used EV dealer Browns of Richmond and motor retail consultancy Motorvise, said the market had grown by 32% in the first quarter of 2026 following 45% growth over the previous 12 months.

“Recent increases in petrol and diesel prices have definitely been a factor,” he said. “We can show potential buyers that, as long as there is space at home for a charger, they should save a typical £154 a month on a two-to-three-year-old small car by going electric.

“Buyers come to us in a state we describe as ‘EV curious,’ and we embark on a process of education about what they can expect from electric car ownership. By their third conversation, we have generally won them over – and those that are the biggest sceptics initially often become the biggest advocates.”

Brown said Browns of Richmond had increased sales from around 20 used EVs per month at the start of the year to approximately 130, with plans to open additional sites across the UK.

“We concentrate on EVs that we know provide the best deal for customers and are the country’s biggest retailer of used Teslas but also sell many BMWs, Kias and indeed, almost any electric car with a full service history and battery health check,” he said.

“Our business model is based on a fast turnaround of 19 days, which is possible because of our processes and the fact that consumer interest is so high. We very much believe that, even though EV supply into the used market is set to increase rapidly, demand will continue to outstrip the available stock and prices will rise accordingly.”

Supporting that view, Stuart Pearson, chief operating officer at BCA, said auction performance also pointed to a significant shift in the market.

“We’ve seen first-time auction conversion rates increase from around 70% to more than 90% in recent months,” he said. “Whilst Teslas account for around half of this volume, demand is now strong across most electric vehicles and it feels as though the market has turned a corner.”

Pearson added that encouraging signs were also emerging in the electric van market.

“Whilst EVs account for only a small proportion of our overall light commercial vehicle sales, acceptance among potential buyers is growing. As more customers recognise that a used electric van can be a practical option when its range and payload meet their requirements, they are increasingly attracted by the highly competitive running costs it can deliver.”

The meeting also heard that finance providers are becoming increasingly comfortable lending against used electric vehicles.

Graham Filmer, of Rocket Associates, said lenders now view used EVs much more like conventional vehicles after several years of building market data and experience.

“Initially, financing used electric cars was seen as an unwelcome risk, simply because they were a new phenomenon and there was little data available,” he said. “That situation has changed dramatically and, although there may be stipulations such as a battery health check, lenders now view EVs much like any other car.”

He noted that some caution remains around newer Chinese manufacturers, where uncertainty over long-term market presence continues to influence lender appetite.

“Some franchise dealers often had their fingers burnt from the residual value collapse that occurred when electric cars first entered the used market and are not keen to repeat the experience,” he said.

“Moving decisively towards the used electric car market can appear as both a risk and an area that requires investment in areas such as training sales staff. While there is a strong temptation to stay with what they know, the used electric car market represents some real opportunities and failing to grasp them may lead to some financial stress.”

The discussions highlighted growing confidence across the used EV ecosystem, with retailers, auction houses and finance providers increasingly aligned in their belief that improving consumer demand, stronger pricing and greater market maturity are creating significant opportunities for the sector.